Prepare a table showing parks 1 current ratio 2 acid-test

Reference no: EM13570190

Park Corporation began the month of May with $1,100,000 of current assets, a current ratio of 2.10:1, and an acid-test ratio of 1.60:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).

May	2	Purchased $75,000 of merchandise inventory on credit.
	8	Sold merchandise inventory that cost $60,000 for $130,000 cash.
	10	Collected $26,000 cash on an account receivable.
	15	Paid $30,000 cash to settle an account payable.
	17	Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
	22	Declared a $1 per share cash dividend on its 55,000 shares of outstanding common stock.
	26	Paid the dividend declared on May 22.
	27	Borrowed $90,000 cash by giving the bank a 30-day, 10% note.
	28	Borrowed $100,000 cash by signing a long-term secured note.
	29	Used the $190,000 cash proceeds from the notes to buy new machinery.

Required:

Prepare a table showing Park's (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. (Do not round intermediate calculations. Round your ratios to 2 decimal places and the working capitals to nearest dollar amount. Omit the "$" sign in your response.)

Transaction	Current Ratio	Acid-Test Ratio	Working Capital
Beginning			$
May 2
May 8
May 10
May 15
May 17
May 22
May 26
May 27
May 28
May 29			$

Reference no: EM13570190

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